Southern Africa poised to boost trade with new economic powerhouses

The Southern African Development Community (SADC) is poised to benefit from the commodity boom triggered by the demand of new economic powerhouses such as China and India and is set to cement existing relations with these countries.

According to data released during the 26th SADC summit held here on Friday, the rapid economic growth of China and India has boosted their ties with Africa, and the continent's trade with the two countries has tripled in just five years. Investment and aid have also increased.

Widely seen as the "new centers of economic power", China and India have emerged as Africa's major trading partners in the past five years.

Political and business leaders from the region and other parts of Africa, meeting in South Africa for the World Economic Forum on Africa in June, have agreed on the need to establish a new partnership with China and India so that they can contribute to the continent's development.

Tanzanian President Jakaya Kikwete described the Asian countries as models for change that can significantly contribute to Africa's transformation.

"They give Africa hope that it is possible to transform our nations from abject poverty and put them on a development path. One day, with right policies and right actions, we too can get there," said Kikwete.

Mandisi Mpahlwa, South Africa's Minister of Trade and Industry, said the"new centers of economic power" understand the issues that Africa is grappling with.

"They have the experience of similar conditions, such as huge numbers of African people whose livelihoods depend on agriculture. That is very different from the developed world," said Mpahlwa.

The trade between China and Africa has more than trebled since 2000, rising from 10 billion U.S. dollars in 2000 to 35 billion dollars in 2005. Chinese investment in Africa is also growing fast, with some 800 Chinese firms doing business on the continent.

India has also been actively promoting trade with Africa in recent years. To boost the country's trade with the Sub-Saharan African region, the Indian government launched the "Focus: Africa" program covering the period 2002-07.

Target countries identified during the first phase of the program include Mauritius, Kenya and Ethiopia, but this has been expanding to include more countries.

India provides financial assistance to various trade promotion organizations and export promotion councils in the form of market development assistance under the "Focus: Africa" program.

Indian carmaker, Tara Motors, has made significant in-roads into South Africa's lucrative vehicle industry.

Through the SADC-India Forum, southern Africa and India have resolved to work together in the areas of agriculture, promotion of small and medium-scale industries, pharmaceuticals, human resources development, water resources management, and information and communications technology.

The first session of the forum was held in Windhoek, Namibia, in April.

Source: Xinhua